Core Insights - Macy's reported quarterly earnings of $1.67 per share, exceeding the Zacks Consensus Estimate of $1.53 per share, but down from $1.8 per share a year ago, representing an earnings surprise of +9.39% [1] - The company achieved revenues of $7.64 billion for the quarter, surpassing the Zacks Consensus Estimate by 1.53%, although this is a decrease from $7.77 billion in the same quarter last year [2] - Macy's has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise of +9.39% indicates strong performance relative to expectations, while the previous quarter saw a significant surprise of +169.23% when the company reported earnings of $0.09 against an expected loss of $0.13 [1][2] - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $4.57 billion, and for the current fiscal year, it is $2.09 on revenues of $21.35 billion [7] Stock Performance and Outlook - Macy's shares have declined approximately 23.3% since the beginning of the year, contrasting with the S&P 500's decline of 1.9% [3] - The company's Zacks Rank is currently 4 (Sell), indicating expectations of underperformance in the near future due to unfavorable estimate revisions prior to the earnings release [6] Industry Context - The Retail - Regional Department Stores industry, to which Macy's belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, suggesting a challenging environment for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Macy's stock performance [5]

Core Insights - Kohl's reported quarterly earnings of $1.07 per share, exceeding the Zacks Consensus Estimate of $0.85 per share, and showing an increase from $0.95 per share a year ago, resulting in an earnings surprise of +25.29% [1] - The company generated revenues of $5.17 billion for the quarter ended January 2026, which was 1.05% below the Zacks Consensus Estimate and a decrease from $5.4 billion year-over-year [2] Earnings Performance - Kohl's has surpassed consensus EPS estimates in all four of the last quarters [2] - The company had a significant earnings surprise of +152.63% in the previous quarter, where it was expected to post a loss of $0.19 per share but instead reported earnings of $0.10 [1][2] Stock Performance - Kohl's shares have declined approximately 27.5% since the beginning of the year, contrasting with the S&P 500's decline of only 0.7% [3] - The stock currently holds a Zacks Rank of 4 (Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is -$0.15 on revenues of $3.17 billion, while for the current fiscal year, it is $1.30 on revenues of $15.49 billion [7] - The outlook for the Retail - Regional Department Stores industry is currently unfavorable, ranking in the bottom 7% of over 250 Zacks industries, which may impact stock performance [8] Competitor Insights - Macy's, a competitor in the same industry, is expected to report quarterly earnings of $1.55 per share, reflecting a year-over-year decline of -13.9%, with revenues anticipated to be $7.52 billion, down 3.1% from the previous year [9][10]

Core Viewpoint - Macy's, Inc. is preparing to report its fourth-quarter fiscal 2025 earnings, with investors weighing the decision to buy or hold the stock ahead of the announcement [1] Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for fourth-quarter revenues is $7.52 billion, reflecting a 3.1% decline from the previous year [3] - The consensus estimate for quarterly earnings remains at $1.55 per share, indicating a 13.9% decrease compared to the same quarter last year [5] - Macy's has a trailing four-quarter average earnings surprise of 78.9%, with the last quarter's earnings exceeding the Zacks Consensus Estimate by 169.2% [3] Group 2: Strategic Initiatives and Performance Drivers - Macy's is advancing its Bold New Chapter strategy, focusing on luxury, store optimization, and cost discipline, which may have supported holiday traffic and sales [2][7] - The Reimagine 125 locations have shown better performance due to improved in-store experiences and localized merchandising [10] - The luxury banners, particularly Bloomingdale's and Bluemercury, have contributed to comparable sales growth, benefiting from strong demand in high-end categories [11] Group 3: Operational Improvements - The opening of the China Grove distribution center has introduced advanced automation and robotics, enhancing delivery speed and cost efficiency [12] - Stabilization in the credit card portfolio and growth in applications indicate healthier engagement within Macy's loyalty ecosystem, potentially supporting holiday spending [13] Group 4: Challenges and Market Pressures - Macy's faces risks from tariffs, store closures, and macroeconomic pressures, which may have tempered revenue and earnings growth despite operational progress [2][14] - Management has noted the impact of tariffs on merchandise margins, and ongoing promotional intensity across the retail landscape has created top-line friction [14] - Comparable sales are expected to decline by 1.6% on an owned basis and 1.5% on an owned-plus-licensed-plus-marketplace basis in the fiscal fourth quarter [14] Group 5: Valuation and Market Performance - Macy's stock is trading at a forward P/E ratio of 9.23, significantly below the industry average of 13.57, suggesting it may be undervalued [15] - Compared to major retail competitors, Macy's valuation appears discounted, with Costco, Walmart, and Ross Stores trading at higher forward P/E ratios [17] - Over the past six months, Macy's stock has increased by 23.7%, outperforming the industry but underperforming key peers like Walmart and Ross Stores [18][20]

Core Viewpoint - Dillard's reported quarterly earnings of $10.08 per share, exceeding the Zacks Consensus Estimate of $9.98, but down from $13.48 per share a year ago, indicating a mixed performance despite beating earnings expectations [1] Financial Performance - The company achieved revenues of $1.96 billion for the quarter, which fell short of the Zacks Consensus Estimate by 2.85% and decreased from $2.02 billion year-over-year [2] - Over the last four quarters, Dillard's has surpassed consensus EPS estimates four times and topped revenue estimates twice [2] Stock Performance - Dillard's shares have increased by approximately 6.6% since the beginning of the year, contrasting with a slight decline of 0.1% in the S&P 500 [3] Future Outlook - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $9.22 for the upcoming quarter and $30.86 for the current fiscal year [4][7] - The Zacks Rank for Dillard's is currently 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6] Industry Context - The Retail - Regional Department Stores industry, to which Dillard's belongs, is currently ranked in the top 7% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

Company Performance - Ross Stores has returned 11.2% year-to-date, outperforming the average loss of 0.8% in the Retail-Wholesale group [4] - The Zacks Consensus Estimate for Ross Stores' full-year earnings has increased by 2.1% over the past three months, indicating improving analyst sentiment [3] Industry Comparison - Ross Stores belongs to the Retail - Discount Stores industry, which has gained about 11.3% year-to-date, indicating that Ross is slightly underperforming its industry group [5] - Dillard's, another stock in the Retail-Wholesale sector, has returned 9.4% year-to-date and has a consensus EPS estimate that increased by 6.9% over the past three months [4][5] Sector Ranking - The Retail-Wholesale group is currently ranked 10 within the Zacks Sector Rank, which evaluates 16 different sector groups [2] - The Retail - Regional Department Stores industry, to which Dillard's belongs, is ranked 7 and has moved up by 4.3% year-to-date [6]

Core Viewpoint - Macy's stock has shown mixed performance recently, with a notable increase in the latest session, but a significant decline prior to that, indicating volatility in its market position [1][2]. Financial Performance - Upcoming earnings disclosure is expected to reveal an EPS of $1.55, reflecting a 13.89% decrease year-over-year, with revenue anticipated at $7.52 billion, a 3.14% decline compared to the same quarter last year [2]. - For the full year, earnings are projected at $2.20 per share, representing a 16.67% decrease, while revenue is expected to remain flat at $21.65 billion [3]. Analyst Estimates - Recent changes in analyst estimates for Macy's suggest a positive outlook on its business operations, with upward revisions indicating confidence in profit generation [4]. - The Zacks Rank system currently rates Macy's at 3 (Hold), with a 0.6% increase in the Zacks Consensus EPS estimate over the past month [6]. Valuation Metrics - Macy's is trading at a Forward P/E ratio of 9.48, which is below the industry average Forward P/E of 13.77, indicating a potential undervaluation [7]. - The Retail - Regional Department Stores industry, to which Macy's belongs, holds a Zacks Industry Rank of 4, placing it in the top 2% of over 250 industries [7][8].

Core Viewpoint - Dillard's (DDS) is currently outperforming its peers in the Retail-Wholesale sector, with a year-to-date return of 5.8% compared to the sector average of 5.6% [4]. Group Performance - Dillard's is part of the Retail-Wholesale group, which consists of 193 companies and ranks 6 in the Zacks Sector Rank [2]. - The Zacks Rank system indicates that Dillard's holds a Zacks Rank of 2 (Buy), reflecting a positive earnings outlook with a 9.8% increase in the consensus estimate for full-year earnings over the past three months [3]. Industry Comparison - Dillard's belongs to the Retail - Regional Department Stores industry, which includes 3 stocks and currently ranks 4 in the Zacks Industry Rank. This industry has seen an average gain of 0.4% year-to-date, indicating Dillard's superior performance [5]. - In contrast, Ross Stores, another outperforming stock in the Retail-Wholesale sector, belongs to the Retail - Discount Stores industry, which has a lower ranking (58) but has increased by 8.7% year-to-date [6].

Core Viewpoint - Macy's, Inc. is trading at a forward 12-month P/E multiple of 9.89X, significantly lower than the industry average of 15.65X, raising questions about whether this discount reflects business challenges or presents a buying opportunity [1][4]. Valuation and Performance - Macy's stock has appreciated by 22.9% over the past month, outperforming the industry growth of 18%, as well as the Retail-Wholesale sector and S&P 500 Index returns of 7.1% and 5.8%, respectively [5]. - Despite recent gains, Macy's shares remain 9.9% below their 52-week high of $24.41, indicating potential for further upside [8]. - The stock trades above its 50-day and 200-day moving averages of $21.73 and $15.49, suggesting a favorable technical setup [8]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Macy's EPS has been revised upward by 16 cents and 7 cents for the current and next fiscal years, now at $2.16 and $2.23, respectively [9]. - Recent upward revisions in earnings estimates reflect positive sentiment and improved sales and profit outlooks [7][9]. Strategic Initiatives - Macy's is undergoing a transformation with its "Bold New Chapter" strategy, focusing on curated assortments, enhanced brand variety, and improved customer service [13]. - The company is investing in upgraded store environments and better product presentation to deepen customer engagement [14]. - Luxury brands are a significant growth driver, with Bloomingdale's enhancing its positioning through exclusive partnerships and improved in-store experiences [15]. Operational Improvements - Macy's is modernizing its operations, including the new China Grove distribution center that utilizes robotics and AI for improved efficiency [16]. - The company emphasizes an omnichannel approach, enhancing digital capabilities and customer experience across various platforms [17]. Future Outlook - For fiscal 2025, Macy's raised its net sales outlook to $21.48-$21.63 billion, up from $21.15-$21.45 billion, with expectations for comparable sales to be flat to up 0.5% year-over-year [18]. - The adjusted EBITDA margin is projected to be 7.8-8%, reflecting improved operating leverage [19]. - The adjusted earnings per share forecast has been lifted to $2.00-$2.20, indicating stronger performance visibility [20]. Financial Position - Macy's demonstrates strong cash generation, limited near-term debt maturities, and ongoing share repurchases, enhancing its financial stability [21]. Investment Opportunity - Macy's presents an attractive opportunity for long-term investors, trading below peer valuations while advancing its strategic initiatives [22]. - The company holds a Zacks Rank 1 (Strong Buy), indicating strong investment potential [23].

Group 1: Company Overview - Dillard's (DDS) is a notable stock within the Retail-Wholesale sector, which consists of 195 companies and currently ranks 5 in the Zacks Sector Rank [2] - Dillard's has a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperforming the market in the near term [3] Group 2: Performance Metrics - Year-to-date, Dillard's has returned 15.5%, outperforming the average gain of 12.8% for the Retail-Wholesale group [4] - The consensus estimate for Dillard's full-year earnings has increased by 7.6% over the past quarter, reflecting positive analyst sentiment [3] Group 3: Industry Comparison - Dillard's is part of the Retail - Regional Department Stores industry, which ranks 1 in the Zacks Industry Rank, but has slightly underperformed its industry with an average gain of 48.3% year-to-date [6] - In contrast, Dollar General, another stock in the Retail-Wholesale sector, has a year-to-date return of 13.9% and belongs to the Retail - Discount Stores industry, which ranks 20 [4][7]

Core Viewpoint - Five Below (FIVE) is currently outperforming its peers in the Retail-Wholesale sector, with a year-to-date performance of approximately 73.4% compared to the sector average of 6.6% [4]. Company Performance - Five Below is part of the Retail-Wholesale sector, which includes 196 individual stocks and holds a Zacks Sector Rank of 7 [2]. - The Zacks Rank for Five Below is 1 (Strong Buy), indicating a positive outlook based on earnings estimates and revisions [3]. - Over the past 90 days, the Zacks Consensus Estimate for Five Below's full-year earnings has increased by 16.2%, reflecting improved analyst sentiment [4]. Comparative Analysis - Kohl's (KSS) is another Retail-Wholesale stock that has shown strong performance, with a year-to-date increase of 61.5% and a consensus EPS estimate increase of 110.9% over the past three months, currently holding a Zacks Rank of 2 (Buy) [5]. - Five Below belongs to the Retail - Miscellaneous industry, which includes 15 companies and is ranked 103 in the Zacks Industry Rank, with an average gain of 7.7% year-to-date [6]. - In contrast, Kohl's is part of the Retail - Regional Department Stores industry, which has a ranking of 5 and has increased by 47.2% year-to-date [6]. Future Outlook - Investors interested in Retail-Wholesale stocks should monitor Five Below and Kohl's for potential continued strong performance [7].